Leap Wireless changes rate plans for iPhones

Leap Wireless is juggling its rate plans for the iPhone because of softer-than-expected sales of the devices on its no-contract Cricket wireless network.

The San Diego based month-to-month operator will now offer iPhones on $50 per month rate plans – which is equal to Cricket’s lowest cost Android smartphone plans. Cricket sells the iPhone 5, iPhone 4S and iPhone 4.

Cricket also introduced a family plan that gives discounts for multiple smartphones in the same household. The plans are available at Cricket-owned stores and select dealers nationwide.

Last June, Leap Wireless became the first no-contract carrier to sell Apple’s popular iPhone. The company committed to buy $800 million in iPhones from Apple over the next three years. But earlier this year, Leap revealed that the pace of iPhones sales is lower than expected — putting the company in jeopardy of failing to meet minimum purchase requirements under its contract with Apple.

At the time, the company said high prices for iPhones and other smartphones had been a roadblock to sales. Since it’s a no-contract carrier, Leap doesn’t subsidize the cost of smartphones as much as two-year-contract competitors do. Leap is expanding a financing program that will allow customers to spread out the payments for the devices over a few months.

And now it revamped its rate plans for iPhones to make them on par with Android smartphones that the company offers.

Cricket’s $50 plan offers unlimited talk and text, as well as 1 gigabit of full speed data per month. The $60 plans has unlimited talk and text, plus 2.5 gigabits per month of full speed data. And the $70 a month plan expands the data cap to 5 gigabits, along with unlimited talk and text.

Previously, the cheapest iPhone rate plan available was $55 a month with 2.5 gigabits of data. Company spokesman Greg Lund said the new plans give iPhone owners more choice based on the amount of data they use.

Customers on the current $55 iPhone plan may continue on that plan for as long as they keep their service activated, the company said. Customers who would like to change from their current iPhone plan may do so without being charged any fees.

For its family plan program, Cricket is offering a $10 monthly discount per line for up to five smartphones. So a family with two smartphone lines would pay $40 a month per line instead of $50 per month as individual customers.

Cricket customers who want a family plan also must get automatic bill pay, where their monthly bill is automatically paid using a designated credit card, debit card or bank account on file.